Bitcoin’s Plunge Exposes Idea of Uncorrelated Asset as ‘Big Lie’ - BLOOMBERG
One difference between the current environment and other prolonged downturns such as the “crypto winter” in 2018 is the amount of institutions now involved in the market, which may be a source of support, said Paul Veradittakit, an partner at digital asset manager Pantera Capital.
“Compared to 2018, there are more institutional investors with exposure to crypto and most see this as a buying opportunity,” said Veradittakit.
BY Ebbing Rally
Monday’s price action saw Bitcoin give back some of a Sunday rally. The total market value of cryptocurrencies has dropped by about $326 billion in the past seven days to roughly $1.33 trillion, according to data from CoinGecko. Bitcoin is some 57% off its November all-time high.
While crypto markets may have digested the worst of the TerraUSD fallout, the asset class faces other challenges -- most notably, rising global interest rates and tighter liquidity conditions.
Bitcoin’s current lower support is at $27,000, “which can likely stabilize price action in the coming days,” said Edul Patel, chief executive officer of Mudrex, an algorithm-based crypto investment platform.